Infineon Technologies Ag · XETR:IFX

Infineon Technologies — Q4 FY2013 Earnings Presentation

32 slides from Infineon Technologies's earnings presentation, Nov 12, 2013

  1. Slide 1: Fourth Quarter FY 2013 Quarterly Update

    Fourth Quarter FY 2013 Quarterly Update Infineon Technologies AG Investor Relations

  2. Slide 2: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Drivers – ATV, PMM, IFX  Product to System  Results and Outlook Disclaimer: This presentation contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group. These statements are based on

  3. Slide 3: Revenue Split by Division

    Revenue Split by Division Q4 FY 2013 revenue: EUR 1,053m ATV IPC € 455m € 197m PMM CCS € 271m € 129m OOS+C&E* € 1m * Other Operating Segments; Corporate and Eliminations. 2013-11-12 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 3

  4. Slide 4: Q4 FY13 Segment Result Margin Excluding Non-Recurring Items Approximately 13%

    Q4 FY13 Segment Result Margin Excluding Non-Recurring Items Approximately 13% [EUR m] Q3 FY13 Q4 FY13 FY 2013 Revenue 1,022 1,053 3,843 Segment Result 117 148 377 SR Margin 11.4% 14.1% 9.8% [EUR m] 1,022 1,053 Net Income* 77 142 272 Investment 71 155 378 FCF from cont. 148 135 156 235 117 operations

  5. Slide 5: Tight Customer Relationships are Based on System Know-how and App Understanding

    Tight Customer Relationships are Based on System Know-how and App Understanding ATV IPC PMM CCS Distributors 2013-11-12 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 5

  6. Slide 6: Infineon Holds Top Positions in All Target Markets

    Infineon Holds Top Positions in All Target Markets Automotive Power Chip Card #2 #1 #1 Renesas 14% Infineon 12% Infineon 24.1% Infineon 9% Toshiba 7% NXP 23.8% STMicro 8% Mitshubishi 7% Samsung 22% Freescale 7% STMicro 6% STMicro 17% NXP 6% Fairchild 6% SHHIC 6% Automotive semiconductors in Power se

  7. Slide 7: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Drivers – ATV, PMM, IFX  Product to System  Results and Outlook 2013-11-12 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 7

  8. Slide 8: Despite Europe, Global Car Production Up in 2013; Long-term Prospects Still Healthy

    Despite Europe, Global Car Production Up in 2013; Long-term Prospects Still Healthy Global car production (cars ≤ 6t) [units m] CAGR(12-16) = 4.0% +2.3% 98.6 101.9 95.5 91.8 8.1 83.4 86.7 7.5 7.8 81.5 7.1 7.7 7.6 74.4 76.9 6.5 8.0 7.8 6.0 6.0 16.5 6.6 9.0 8.2 15.6 6.4 9.4 14.2 15.1 9.1 7.9 13.1 12.8

  9. Slide 9: Semiconductor Value-Per-Car Continues to Increase

    Semiconductor Value-Per-Car Continues to Increase Semiconductor value per car by region Semiconductor value per car [USD] [USD] [USD] 211 CAGR 338 CAGR Brazil World 184 +3.5% 315 +1.8% 253 CAGR 2016 2012 China 206 +5.3% Semiconductor market by segment 367 CAGR S. Korea 332 +2.5% [USD bn] 7.9 CAGR Po

  10. Slide 10: ATV: ICEs Still Bread-and-Butter Business; New Opportunities with HEV/EV

    ATV: ICEs Still Bread-and-Butter Business; New Opportunities with HEV/EV Classical car market Electromobility Vehicle production Semi content HEV / EV Courtesy: Bosch Courtesy: Volvo TAM: ~4% p.a. TAM: 1-2% p.a. TAM: > 25% p.a. small units but high growth TAM: 5-6% p.a. 2%-pt p.a. ATV: ~7% p.a. Sour

  11. Slide 11: Higher Functionality in Mobile Devices Requires Additional Infineon Components

    Higher Functionality in Mobile Devices Requires Additional Infineon Components Feature phone Smartphones MOSFETs and power management ICs Smart high-density Infineon’s addressable content per phone Silicon MEMS microphones charger Up to $2 TVS diodes High-density RF switches charger 2-3 microphones*

  12. Slide 12: PMM Aims to Outgrow Its Core Markets

    PMM Aims to Outgrow Its Core Markets Power Management Mobile Communications Computing Lighting Charger Mobile devices Cellular infrastructure TAM: > 7% p.a. TAM: > 7% p.a. PMM: > 10% p.a. 2013-11-12 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 12

  13. Slide 13: Expected Growth Broadly In Line With Historical Averages

    Expected Growth Broadly In Line With Historical Averages ATV IPC PMM CCS Courtesy: Daimler AG ~7% p.a. >10% p.a. >10% p.a. ~5% p.a. Infineon: ~ 8% p.a. 2013-11-12 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 13

  14. Slide 14: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Drivers – ATV, PMM, IFX  Product to System  Results and Outlook 2013-11-12 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 14

  15. Slide 15: New Strategic Approach: Product to System

    New Strategic Approach: „Product to System“ Benefit for the customer Efficiency System system-centric System improvement application-centric System-in-Package or System-on-Chip component-centric Component time 2013-11-12 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 15

  16. Slide 16: Integrated Engine Management Solution Based on Deep System Understanding

    Integrated Engine Management Solution Based on Deep System Understanding From multi-chip to single chip integrated solution Target applications Power Power Switch Switch Power Power supply Power supply Power MCU Switch MCU Switch Motorcycles / Motorbikes Power Power Switch Switch Comm Comm Power Pow

  17. Slide 17: DC/DC Example Shows That Smart System Solution Drives Higher Content

    DC/DC Example Shows That Smart System Solution Drives Higher Content 2x* Future Smart system solution 2x* Present Digital controller Infineon’s differentiation Component-based system Integrated Driver + MOSFETs Digital controller Past Drivers Components MOSFETs MOSFETs time * Estimated increase in I

  18. Slide 18: DrBlade: Innovative Packaging Enables Higher Levels of System Integration

    DrBlade: Innovative Packaging Enables Higher Levels of System Integration DrBlade: the revolutionary chip-embedding technology  Design-wins for DrBlade, in combination with our digital power management ICs.  Based on Infineon’s outstanding manufacturing technology: thin wafer, galvanic electroplat

  19. Slide 19: Table of Contents

    Table of Contents  Infineon at a Glance  Growth Drivers – ATV, PMM, IFX  Product to System  Results and Outlook 2013-11-12 Copyright © Infineon Technologies AG 2013. All rights reserved. Page 19

  20. Slide 20: Segment Result Margin in FY13: 9.8%; Remained Profitable Even in Q1 FY13

    Segment Result Margin in FY13: 9.8%; Remained Profitable Even in Q1 FY13 Revenue and Segment Result [EUR m] +7% FY 2013 revenue split by product category 1.022 1.053 982 918 851 12% 5% 7% 11% 14% Power eControl RF others 116 117 148 44 68 Q4 FY12 Q1 Q2 Q3 Q4 FY13 Revenue Segment Result Segment Resul

  21. Slide 21: ATV Still on Peak Level; Nice Recovery in IPC; PMM Lifted by Growth Markets

    ATV Still on Peak Level; Nice Recovery in IPC; PMM Lifted by Growth Markets Courtesy: Daimler AG ATV IPC PMM CCS [EUR m] [EUR m] [EUR m] [EUR m] +9% 459 455 416 424 377 +9% +10% 247 266 271 +2% 222 227 181 197 173 138 144 126 108 108 119 129 14% -4% -2% 8% 17% 15% 10% 12% 17% 18% 11% 5% 9% 11% 13% 1

  22. Slide 22: Guidance for Q1 FY14 and FY 2014

    Guidance for Q1 FY14 and FY 2014 Outlook FY 2014 Outlook Q1 FY14 (compared to FY 2013) Between Increase between Revenue €960m and €1bn. 7% and 11%. Segment Between Between Result 8% and 10%. 11% and 14%. Margin Investments in FY 2014 About €650m. D&A in FY 2014 €500m or slightly above. 2013-11-12 Co

  23. Slide 23: Infineon

    Cinfineon Innovative semiconductor solutions for energy efficiency, mobility and security.

  24. Slide 24: Opex-to-Sales-Ratio Well Within Target Range

    Opex-to-Sales-Ratio Well Within Target Range S and G&A1) R&D2) [EUR m] 139 140 140 121 123 123 122 15% 115 115 120 108 102 14% 100 80 13% 60 12% 40 11% 20 0 10% Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 FY12 FY13 FY12 FY13 General & Administration Selling R&D % of sales 1) Target range for SG&A: ‚Low teens perc

  25. Slide 25: DOI, DSO and DPO in Line With Our Targets

    DOI, DSO and DPO in Line With Our Targets Working capital* Inventories [EUR m] [EUR m] [days] Q4 FY12 Q1 Q2 Q3 Q4 FY13 585 573 589 609 600 567 100 0 80 -17 -25 400 60 -200 -117 -123 40 200 -400 20 -353 0 0 Q4 FY12 Q1 Q2 Q3 Q4 FY13 -600 Inventories DOI* Trade accounts receivable Trade payables [EUR m

  26. Slide 26: Future Investments Expected to Be About 15% of Sales

    Future Investments Expected to Be About 15% of Sales Investments* D&A [EUR m] 1000 30% 887 890 800 ~650 20% 600 ~500 15.1% 15.5% 453 336 364 428 466 378 11.9% 11.9% 400 325 10% 200 115 0 0% FY09 FY10 FY11 FY12 FY13 FY14 FY09 FY10 FY11 FY12 FY13 FY14 Fiscal Year Guidance 5Y-avg % of sales Guidance %

  27. Slide 27: Gross Cash and Net Cash Increased Due to Positive Free Cash Flow

    Gross Cash and Net Cash Increased Due to Positive Free Cash Flow Liquidity Development [EUR m] Gross Cash Debt Equity-linked Net Cash 100 108* 102 105 195 104 195 211 207 200 1940 2235 2081 1768 2016 1705 2137 1832 2286 1983 Q4 Q1 Q2 Q3 Q4 FY12 FY13 FY13 * Consists of convertible bond (nominal value

  28. Slide 28: Target: 'RoCE above WACC' over the cycle

    Target: 'RoCE above WACC' over the cycle RoCE* history WACC: low teens % 30% FY12: 22% 20% 27% 27% 25% 20% 27% FY13: 14% 10% 16% 5% 7% 0% Q1 FY12 Q2 Q3 Q4 Q1 FY13 Q2 Q3 Q4 Capital Employed* history 2,500 [EUR m] 2,035 2,239 2,274 2,216 2,159 1,760 1,889 2,000 1,629 1,500 1,000 500 0 Q1 Q2 Q3 Q4 Q1 Q

  29. Slide 29: Notes

    Notes Investments = Please note: 'Purchase of property, plant and equipment' All positions in ' ' refer to the + 'Purchase of intangible assets and other assets' incl. capitalization of R&D expenses respective accounting position and therefore should be applied with the Capital Employed = positive o

  30. Slide 30: Infineon is a Long-standing Member of Europe's Leading Sustainability Indices

    Infineon is a Long-standing Member of Europe's Leading Sustainability Indices Infineon’s most recent achievements  October 2013: oekom research has classified Infineon as „Prime“, which serves as an indicator of the  February 2013: Infineon is quality of Infineon’s listed in the Sustainable perfor

  31. Slide 31: Financial Calendar

    Financial Calendar Date Location Event Company Roadshow including presentation by 18 – 19 Nov 2013 London Andreas Urschitz, Division President, Power Management & Multimarket 20 – 21 Nov 2013 Barcelona Morgan Stanley TMT Conference 03 – 04 Dec 2013 Scottsdale, AZ Credit Suisse Technology Conference

  32. Slide 32: Institutional Investor Relations Contact

    Institutional Investor Relations Contact Ulrich Pelzer Corporate Vice President  +49 89 234-26153 Finance, Treasury &  ulrich.pelzer@infineon.com Investor Relations Joachim Binder Senior Director  +49 89 234-25649 Investor Relations  joachim.binder@infineon.com Holger Schmidt Manager  +49 89 23

Infineon Technologies — Q4 FY2013 Earnings Presentation on 6ix